In Brief

• CEA Industries chose BNB over Bitcoin or Ethereum for its crypto treasury.
• Incoming CEO David Namdar believes BNB is undervalued in Western markets.
• CEA shares (VAPE) have seen substantial gains following the announcement, though they retreated on subsequent trading day.

Funding Strategy and Token Selection

CEA Industries declared Monday details of a plan to raise up to $1.25 billion to purchase BNB. Coincidentally, BNB reached a new all-time high of $858 shortly before the announcement, driving CEA’s stock price more than 700% intraday before pulling back.

This decision marks a deviation from the usual crypto treasury staples. Namdar highlighted BNB Chain’s similarities to Ethereum’s network while emphasizing its unique evolution and untapped potential.

“A lot of it really has been a non-U.S. story. Most of the Western capital markets investors… have been completely cut off. BNB really hasn’t been something that people have realized or paid enough attention to.”

CEO’s Vision: BNB as the “Chain of the Future”

Namdar envisions a future where BNB Chain plays a pivotal role, particularly in emerging technologies like AI and robotics.

“I see it as the chain of the future. It might be the chain for AI and robotics opportunities… There’s a lot of different things that BNB can bring to the table.”

In his new role, Namdar stressed the importance of education and market development.

“It’s a bit of storytelling and helping people understand the opportunity… helping effectuate that growth,” he stated.

The CEO also noted that long-term investors are crucial, as returns may materialize over a multi-year horizon.

“I hope investors are here for the medium or long-term. … Those … may be excited about the potential returns over time.”

Market Reactions and Analyst Opinions

Shares of CEA Industries (VAPE) surged intraday by over 700% after the announcement. While the stock dropped ~30% the following day, its trailing five-day performance remains remarkable, up more than 336%.

This growing interest and potential was further reinforced by a Standard Chartered analyst piece from May, forecasting a 300%+ price rise by 2028, suggesting a potential valuation exceeding $2,775.

CEA’s Mandate

Simultaneously with championing BNB, Namdar aims to boost CEA’s overall valuation, including metrics relevant to crypto-backed treasuries like market net asset value (mNAV).

“If that understanding… occurs… I think CEA industries will be thought of very positively.”